Financial literacy and personal financial decisions of local government staff at Prestea Huni-Valley Municipal assembly in the western region.

Abstract

The contemporary developments in financial markets has increasingly become essential for individuals to be more aware and competent in managing their finances. This calls for financial literacy study to examine how people respond to this financial market complexity and sophistication. This study was conducted to assess the level of financial literacy and personal financial decisions among Local Government Staff of the Prestea Huni-Valley Municipal in the Western Region. A sample of 277 staff using a stratified sampling technique was used. A self-administered questionnaire was used to collect the data, and the analysis was done using the Chi-Square Test of Independence. The results indicated that low understanding of the economic and financial variables used as the correct scores were below averages in the areas of percentages, compound interest, inflation and time value of money. The study thus, concluded that financial literacy among the respondents sampled was low. The study found no relationship between financial literacy and gender or sex as none of the variables were significant. However, there was an association between financial literacy and level of education. Again, while most employees plan on their retirement and expect adequate amounts for their retirement, their gratuities cannot be realized. It is recommended that the Office of the Head of Local Government Service organize financial literacy education for staff in savings and investments. Staff should also take their retirement planning seriously. This would advance financial literacy, increase staff involvement in the financial markets, and enhance their wellbeing and work productivity.